Nordstrom profit down 11 percent
(AP) NEW YORK - Nordstrom (JWN) is reporting an 11 percent decline in second-quarter net income, as results were affected by the timing of the biggest sale of the year.
But the Seattle-based upscale retailer is also increasing its full-year earnings guidance and accelerating growth plans for its Rack chain.
Sales have rebounded since late 2009 for Nordstrom and many other luxury retailers as well-heeled shoppers have gotten more comfortable with splurging again.
Most rewarding store credit cards
J.C. Penney revives "clearance" sales
Watch: Nordstrom plans to open first NYC store
Nordstrom Inc. said Thursday it earned $156 million, or 75 cents per share, for the quarter ended July 28. That compares with $175 million, or 80 cents per share, in the year-ago period.
Sales excluding credit card revenue rose 7.4 percent to $2.92 billion. Revenue at stores opened at least a year rose 4.5 percent. The measure is key metric of a retailer's health because it excludes the impact of stores that have opened or closed in the past year.
Analysts surveyed by FactSet had expected 74 cents per share on revenue of $2.96 billion, on average.
The company said that its biggest sale of the year, which lasts 17 days, started a week later this year than last year. That pushed some of the promotions into August.
The company said it was accelerating the pace of openings of its Rack stores, which sell designer goods at discount prices, because of their success. Over the past four years, Nordstrom has more than doubled the number of Nordstrom Rack locations to its current total of 110 stores. Its initial plan for 15 stores opening in 2012 remains intact and will increase to 24 openings in 2013. The company plans to have more than 230 Rack stores by the end of 2016.
Nordstrom said it now expects earnings per share for the full year to be between $3.40 and $3.50. That's up from the original forecast of $3.30 to $3.45 per share. Analysts had expected $3.45 per share.
In after-hours trading, Nordstrom shares added 2.1 percent, or $1.17, to $56.25. The stock ended regular trading down 37 cents at $55.08.
© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.